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Improved Target Acquisition System _ITAS_

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					Electronic Systems Forecast




Improved Target Acquisition System (ITAS)

Outlook                                                                           10 Year Unit Production Forecast
                                                                                                       2004 - 2013
   Forecast International projects the U.S. and Canadian armies to                      Units
    purchase some 730 Improved Target Acquisition Systems over the               160
                                                                                 140
    next decade                                                                  120



                                                                                 100
    Look for Canadian Army ITAS production contract to be                         80

    completed sometime in 2005                                                    60
                                                                                  40

   Expect 1999 U.S. Army ITAS full-rate production contract to be                20
                                                                                   0
    finished in 2006                                                                     2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
                                                                                         150 100 100     75   50   50   50   40   40   40
                                                                                  ITAS                         Years




                                                     Orientation
Description. The Improved Target Acquisition System             Price Range. Estimated unit cost is from US$400,000 to
or ITAS is an anti-tank missile targeting system. The           US$500,000 each.
ITAS uses second-generation Forward-Looking Infrared
                                                                Price is based on an analysis of contracting data and
(FLIR) technology to upgrade the current Tube-
                                                                other available cost information, and on a comparison
launched Optically-tracked Wire-guided missile (TOW)
                                                                with equivalent items. Individual acquisitions may vary
target acquisition and fire control subsystems.
                                                                depending on program factors.
Status. In production.
Total Produced. Through 2003, an estimated 725
systems had been built.
Application. Ground target acquisition.

                                                     Contractors
Raytheon Company, http://www.raytheon.com, 870 Winter St, Waltham, MA 02451-1449 United States, Tel: 1 (781) 860-2386,
  Fax: 1 (781) 860-2520, Prime


                                                  Technical Data
Design Features. The Improved Target Acquisition                and traversing unit modifications that improve hit
System (ITAS) is an advanced second-generation                  probability.    ITAS subsystems include a target
forward-looking infrared (FLIR) night sight, with an            acquisition subsystem, fire control subsystem, battery
advanced daytime optical sight and an eye-safe laser            power source, modified traversing unit, tripod, and
rangefinder. The ITAS doubles the range at which an             launch tube.      The ITAS also features six line-
operator can detect targets and guide the TOW missile,          replaceable units (LRUs).
increasing the probability of a hit over the TOW 2
                                                                The ITAS is fielded at the battalion level, replacing the
system. The ITAS operates from HMMWVs, with a
                                                                TOW 2 system in light infantry units. The ITAS fires
dismount tripod platform available.
                                                                all versions of the TOW missile from both the M41
Key features of the ITAS include an automatic                   ground launcher (dismount mode) and the M1121
boresight, aided target tracking, built-in test capabilities,   HMMWV platform.




                                                                                                                       September 2004
Improved Target Acquisition System (ITAS), Page 2                                       Electronic Systems Forecast


                                           Variants/Upgrades
The ITAS is an upgrade to the TOW 2 targeting system.      missile guidance rate changes, dual language
The system increases detection ranges, and fires all       symbology, laser rangefinder data translation, and other
configurations of TOW missiles.           The modular      technical analyses and simulations.
architecture of the ITAS allows capabilities to be added
                                                           Canada also requires the FCS processor upgrade to
to the system.
                                                           allow the ITAS to grow to a common launcher to
The Canadian forces will integrate ITAS into the           accommodate a variety of future missiles and
Kvaerner Eureka Turret of their LAV III vehicle.           technologies.    The Foreign Military Sales (FMS)
Raytheon and the U.S. Army are working with Canada         contract provides the opportunity for international sales
to define the Canada TOW Under Armor software              to other countries with the ALT turret: Norway,
development to address crew movement mitigation,           Switzerland, and Turkey.

                                             Program Review
Background. The U.S. Army initiated the TOW Sight          Requirements included five years of ITAS production,
Improvement Program (TSIP) as an attempt to field a        with 100 percent options for additional quantities for
second-generation sensor on existing TOW launchers         each of the five years. The announced production
(mounted on the M2 Bradley and M998 High Mobility          requirements were 96 systems in production year one,
Multi-purpose Wheeled Vehicle [HMMWV]). The new            111 systems in year two, 121 systems in year three, 144
sight system would replace the first-generation FLIR       systems in year four, and 112 systems in year five.
system, and provide combat troops with an integrated
                                                           In July 1999, the U.S. Army awarded an ITAS full-rate
day/night capability. However, the original program
                                                           production contract to Raytheon Systems for
was canceled in October 1991 because of budgetary
                                                           US$237,031,632. The contract called for Raytheon to
constraints. This was followed by the ITAS program in
                                                           produce 102 systems in the second quarter of FY99 and
early 1993, with (then) Texas Instruments Defense
                                                           122 systems in the first quarter of FY01.
Systems & Electronics Group receiving a competitive
contract to build the ITAS for the TOW launch system.      Latest Information. In April 2002, Raytheon received a
                                                           contract to produce 75 Tube-Launched, Optically
In September 1996, the U.S. Army awarded a low-rate
                                                           Tracked, Wire-Guided (TOW) missile Improved Target
initial production (LRIP) contract to manufacture 25
                                                           Acquisition Systems (ITAS) for Canada through the
Improved Target Acquisition Systems. A second LRIP
                                                           U.S. Foreign Military Sales (FMS) program. The
contract to produce 74 systems was awarded in March
                                                           Canadian ITAS purchase represents the first
1998.
                                                           international production sale for the Improved Target
In February 1999, the U.S. Army released its ITAS Full     Acquisition System. The Canadian Army will be
Rate Production (FRP) Multiyear Requirements. The          integrating the ITAS into the Kvaerner Eureka Turret in
Requirements called for the U.S. Army to procure the       the LAV III Vehicle.
ITAS solely from Raytheon Systems Company. The

Funding
                                                 U.S. FUNDING
                         FY03        FY04        FY05(Req)                         FY06(Req)
                      QTY    AMT  QTY    AMT    QTY    AMT                        QTY    AMT
Procurement (U.S. Army)
ITAS/TOW Mods (C61700) -    58.9   -    19.1     -     9.8                          -        9.7
                         FY07        FY08        FY09(Req)
                      QTY    AMT  QTY    AMT    QTY    AMT
Procurement (U.S. Army)
ITAS/TOW Mods (C61700) -      -    -      -      -    44.3
All US$ are in millions.
Source: U.S. Army FY 2005 Procurement Budget Document




September 2004
Electronic Systems Forecast                                Improved Target Acquisition System (ITAS), Page 3


Recent Contracts
                             Award
Contractor                (US$ millions)       Date/Description
Raytheon Systems               4.4             Dec 2001 – Portion of an estimated US$65,365,425 FFP contract
                                               with options from FY02 to FY06 for TOW/ITAS contractor
                                               logistics support to maintain operational readiness at or above 90
                                               percent. To be completed December 2006. (DAAH01-02-C-
                                               0028)
Raytheon Systems                 26.8          Feb 2002 – Mod to FFP contract for an option exercise for 75
                                               improved tube-launched optically tracked wire-guided target
                                               acquisition and fire control subsystem sets for the Canadian
                                               government. To be completed May 2005. (DAAH01-99-C-
                                               0126)


Timetable
    Month       Year          Major Development
    Jan         1992          ACAT III program established
    Apr         1993          Contract awarded for TOW ITAS EMD
                1994          TOW ITAS Critical Design Review completed
                1996          TOW ITAS Initial Operational Test and Evaluation
    Sep         1996          TOW ITAS LRIP for 25 units
                1998          Second LRIP contract award
    Jul         1999          TOW ITAS Full-rate production contact awarded
                2000          Initial Operational Capability to 3rd Brigade, 82nd Airborne Div
                2001          Fielded to 2nd Brigade, 82nd Airborne Div
    Apr         2002          Raytheon receives a contract to produce 75 TOW ITASs for Canada
    May         2005          2002 Canadian Army TOW ITAS production contract to be completed
    Dec         2006          1999 U.S. Army TOW ITAS full-rate production contract to be completed


Worldwide Distribution
The U.S. Army and Canadian Forces have purchased the ITAS.

                                           Forecast Rationale
The Improved Target Acquisition System (ITAS) is an       The main role of ITAS is to improve the capability of
anti-tank missile targeting system manufactured by        the Raytheon TOW missile to enable the missile to
Raytheon Systems Company. Raytheon designed the           defeat armored vehicles at extended ranges. The ITAS
ITAS for use by the Tube-launched Optically-tracked       launches all current and future versions of the TOW
Wire-guided missile (TOW).                                missile from both the dismounted ground launcher and
                                                          the High-Mobility Multi-purpose Wheeled Vehicle
As indicated by the Ten-Year Outlook chart, Forecast
                                                          platform.
International projects the U.S. and Canadian armies to
purchase some 730 Improved Target Acquisition             In April 2002, Raytheon received its first Foreign
Systems over the next decade. The TOW missile             Military Sales contract to manufacture the Improved
targeting needs of the U.S. and Canadian armies are       Target Acquisition Systems for Canada. Building upon
driving ITAS purchases.                                   this contract win, expect Raytheon to seek additional
                                                          export sales for the ITAS.




                                                                                                   September 2004
Improved Target Acquisition System (ITAS), Page 4                                                 Electronic Systems Forecast


Ten-Year Outlook
                                        ESTIMATED CALENDAR YEAR PRODUCTION
                                                         High Confidence        Good Confidence         Speculative
                                                              Level                  Level
                                                                                                                           Total
Designation        Application           Thru 03   04        05      06    07    08     09        10   11     12      13   04-13
ITAS               TARGET ACQUISITION         40   20        15       0     0     0      0         0    0      0       0      35
                   (CANADIAN ARMY)
ITAS               TARGET ACQUISITION       685    150      100     100    75    50     50        50   40     40      40    695
                   (U.S. ARMY)
Total Production                            725    170      115     100    75    50     50        50   40     40      40    730




September 2004

				
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